PHILLIPS 66 (R66.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:R66 • US7185461040
120.78 EUR
-1.44 (-1.18%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 3 out of 10 to R66. R66 was compared to 73 industry peers in the Oil, Gas & Consumable Fuels industry. While R66 seems to be doing ok healthwise, there are quite some concerns on its profitability. R66 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year R66 was profitable.
- In the past year R66 had a positive cash flow from operations.
- Of the past 5 years R66 4 years were profitable.
- In the past 5 years R66 always reported a positive cash flow from operatings.
1.2 Ratios
- R66 has a Return On Assets of 1.97%. This is in the lower half of the industry: R66 underperforms 67.12% of its industry peers.
- R66 has a worse Return On Equity (5.56%) than 65.75% of its industry peers.
- R66 has a worse Return On Invested Capital (3.56%) than 73.97% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for R66 is in line with the industry average of 8.73%.
- The last Return On Invested Capital (3.56%) for R66 is well below the 3 year average (8.67%), which needs to be investigated, but indicates that R66 had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.56% | ||
| ROIC | 3.56% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.67%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 1.13%, R66 is doing worse than 73.97% of the companies in the same industry.
- R66's Profit Margin has declined in the last couple of years.
- R66 has a worse Operating Margin (1.99%) than 79.45% of its industry peers.
- In the last couple of years the Operating Margin of R66 has declined.
- The Gross Margin of R66 (10.79%) is worse than 82.19% of its industry peers.
- R66's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.99% | ||
| PM (TTM) | 1.13% | ||
| GM | 10.79% |
OM growth 3Y52.02%
OM growth 5Y-14.16%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), R66 is creating some value.
- The number of shares outstanding for R66 has been reduced compared to 1 year ago.
- The number of shares outstanding for R66 has been reduced compared to 5 years ago.
- Compared to 1 year ago, R66 has a worse debt to assets ratio.
2.2 Solvency
- R66 has an Altman-Z score of 3.19. This indicates that R66 is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.19, R66 is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
- R66 has a debt to FCF ratio of 16.10. This is a negative value and a sign of low solvency as R66 would need 16.10 years to pay back of all of its debts.
- The Debt to FCF ratio of R66 (16.10) is worse than 67.12% of its industry peers.
- R66 has a Debt/Equity ratio of 0.71. This is a neutral value indicating R66 is somewhat dependend on debt financing.
- R66's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. R66 is outperformed by 68.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 16.1 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.45
WACC7.94%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that R66 should not have too much problems paying its short term obligations.
- R66 has a Current ratio of 1.23. This is comparable to the rest of the industry: R66 outperforms 45.21% of its industry peers.
- R66 has a Quick Ratio of 1.23. This is a bad value and indicates that R66 is not financially healthy enough and could expect problems in meeting its short term obligations.
- R66 has a Quick ratio of 0.87. This is comparable to the rest of the industry: R66 outperforms 42.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- R66 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.78%.
- The Earnings Per Share has been decreasing by -5.44% on average over the past years.
- The Revenue for R66 has decreased by -10.68% in the past year. This is quite bad
- Measured over the past years, R66 shows a small growth in Revenue. The Revenue has been growing by 5.91% on average per year.
EPS 1Y (TTM)-58.78%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%23.53%
Revenue 1Y (TTM)-10.68%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-3.27%
3.2 Future
- R66 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.02% yearly.
- Based on estimates for the next years, R66 will show a decrease in Revenue. The Revenue will decrease by -2.15% on average per year.
EPS Next Y4.61%
EPS Next 2Y38.02%
EPS Next 3Y26.97%
EPS Next 5Y22.02%
Revenue Next Year-5.95%
Revenue Next 2Y-5.66%
Revenue Next 3Y-2.41%
Revenue Next 5Y-2.15%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 37.39 indicates a quite expensive valuation of R66.
- Based on the Price/Earnings ratio, R66 is valued a bit more expensive than the industry average as 72.60% of the companies are valued more cheaply.
- R66's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
- R66 is valuated correctly with a Price/Forward Earnings ratio of 12.39.
- R66's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. R66 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.39 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, R66 is valued a bit more expensive than 71.23% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of R66 indicates a slightly more expensive valuation: R66 is more expensive than 69.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.93 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates R66 does not grow enough to justify the current Price/Earnings ratio.
- R66's earnings are expected to grow with 26.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.1
PEG (5Y)N/A
EPS Next 2Y38.02%
EPS Next 3Y26.97%
5. Dividend
5.1 Amount
- R66 has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.10, R66 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, R66 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
- The dividend of R66 has a limited annual growth rate of 5.09%.
Dividend Growth(5Y)5.09%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- R66 pays out 127.72% of its income as dividend. This is not a sustainable payout ratio.
- R66's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP127.72%
EPS Next 2Y38.02%
EPS Next 3Y26.97%
PHILLIPS 66 / R66.DE FAQ
Can you provide the ChartMill fundamental rating for PHILLIPS 66?
ChartMill assigns a fundamental rating of 3 / 10 to R66.DE.
What is the valuation status of PHILLIPS 66 (R66.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to PHILLIPS 66 (R66.DE). This can be considered as Overvalued.
Can you provide the profitability details for PHILLIPS 66?
PHILLIPS 66 (R66.DE) has a profitability rating of 3 / 10.
Can you provide the financial health for R66 stock?
The financial health rating of PHILLIPS 66 (R66.DE) is 4 / 10.
How sustainable is the dividend of PHILLIPS 66 (R66.DE) stock?
The dividend rating of PHILLIPS 66 (R66.DE) is 4 / 10 and the dividend payout ratio is 127.72%.